The harbour authority has been conditionally awarded the largest single grant from the European Fisheries Fund (EFF) pot to support the English fishing industry.
The money, provisionally set aside following the Marine and Fisheries Agency's grant panel meeting, will go towards the £5 million project for a new market hall, auction theatre and meeting rooms in the port.
Developing
A total of £970,000 has already been secured from the Regional Development Agency.
The former chairman of Penwith District Council, Malcolm Pilcher, who has been developing the project over the past eight years, promised the new market would provide job opportunities.
He said: "We have a chance to make Newlyn an example for the rest of the country. It's an opportunity of a lifetime."
The grant application has been turned down twice previously due to unsatisfactory harbour governance, match funding issues and a problem with the industry's views.
Newlyn harbour-master Andrew Munson welcomed the news but said he was yet to find out what assurances would be required from the new commissioners.
He said: "Obviously, to have received such good news that the EFF panel's decision to provisionally award Newlyn £2.3m towards the cost of a new fish market, especially after it had twice been rejected before, is very welcome news indeed."
MFA spokesman Peter Hooley said: "Sufficient progress has been made to allow a provisional grant offer to be made.
"But the monies are subject to assurances from the new Newlyn Harbour Commissioners, who are expected to be appointed before Easter. They will need to provide assurances that they are content with the project – particularly the match funding required."
article copyright THE CORNISHMAN